James Albemarle created a trust fund at the beginning of 2016. The income from this fund will go to his son Edward. When Edward reaches the age of 25, the principal of the fund will be conveyed to United Charities of Cleveland. Mr. Albemarle specified that 75 percent of trustee fees are to be paid from principal. Terry Jones, CPA, is the trustee. a. James Albemarle transferred cash of $320,000, stocks worth $220,000, and rental property valued at $160,000 to the trustee of this fund. b. Immediately invested cash of $270,000 in bonds issued by the U.S. government. Commissions of $4,000 are paid on this transaction. c. Incurred permanent repairs of $7,200 so that the property can be rented. Payment is made immediately. d. Received dividends of $4,400. Of this amount, $1,200 had been declared prior to the creation of the trust fund. e. Paid insurance expense of $2,200 on the rental property. f. Received rental income of $8,200. g. Paid $4,400 from the trust for trustee services rendered. h. Conveyed cash of $5,200 to Edward Albemarle. Prepare all necessary journal entries for the trust to record the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list ...... Record transfer of assets to the fund. Record purchase of bonds. < Prev. 3 of 3 Next MacBook Pro EX 2 Record purchase of bonds. Record payment of commission. bed 4 Record payment of repair expenses. ok Record receipt of dividends. nt Record insurance expense on rental property. Credit ences 7 Record rental income. 8. Record payment for trustee services. 6, Record conveyance of cash to Edward Albemarle. Note : 0 = journal entry has been entered %3D View general journal Record entry Clear entry
James Albemarle created a trust fund at the beginning of 2016. The income from this fund will go to his son Edward. When Edward reaches the age of 25, the principal of the fund will be conveyed to United Charities of Cleveland. Mr. Albemarle specified that 75 percent of trustee fees are to be paid from principal. Terry Jones, CPA, is the trustee. a. James Albemarle transferred cash of $320,000, stocks worth $220,000, and rental property valued at $160,000 to the trustee of this fund. b. Immediately invested cash of $270,000 in bonds issued by the U.S. government. Commissions of $4,000 are paid on this transaction. c. Incurred permanent repairs of $7,200 so that the property can be rented. Payment is made immediately. d. Received dividends of $4,400. Of this amount, $1,200 had been declared prior to the creation of the trust fund. e. Paid insurance expense of $2,200 on the rental property. f. Received rental income of $8,200. g. Paid $4,400 from the trust for trustee services rendered. h. Conveyed cash of $5,200 to Edward Albemarle. Prepare all necessary journal entries for the trust to record the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list ...... Record transfer of assets to the fund. Record purchase of bonds. < Prev. 3 of 3 Next MacBook Pro EX 2 Record purchase of bonds. Record payment of commission. bed 4 Record payment of repair expenses. ok Record receipt of dividends. nt Record insurance expense on rental property. Credit ences 7 Record rental income. 8. Record payment for trustee services. 6, Record conveyance of cash to Edward Albemarle. Note : 0 = journal entry has been entered %3D View general journal Record entry Clear entry
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:James Albemarle created a trust fund at the beginning of 2016. The income from this fund will go to his son Edward. When Edward
reaches the age of 25, the principal of the fund will be conveyed to United Charities of Cleveland. Mr. Albemarle specified that 75
percent of trustee fees are to be paid from principal. Terry Jones, CPA, is the trustee.
a. James Albemarle transferred cash of $320,000, stocks worth $220,000, and rental property valued at $160,000 to the trustee of
this fund.
b. Immediately invested cash of $270,000 in bonds issued by the U.S. government. Commissions of $4,000 are paid on this
transaction.
c. Incurred permanent repairs of $7,200 so that the property can be rented. Payment is made immediately.
d. Received dividends of $4,400. Of this amount, $1,200 had been declared prior to the creation of the trust fund.
e. Paid insurance expense of $2,200 on the rental property.
f. Received rental income of $8,200.
g. Paid $4,400 from the trust for trustee services rendered.
h. Conveyed cash of $5,200 to Edward Albemarle.
Prepare all necessary journal entries for the trust to record the above transactions. (If no entry is required for a transaction/event,
select "No journal entry required" in the first account field.)
View transaction list
......
Record transfer of assets to the fund.
Record purchase of bonds.
< Prev.
3 of 3
Next
MacBook Pro
Transcribed Image Text:EX
2 Record purchase of bonds.
Record payment of commission.
bed
4
Record payment of repair expenses.
ok
Record receipt of dividends.
nt
Record insurance expense on rental property.
Credit
ences
7 Record rental income.
8.
Record payment for trustee services.
6,
Record conveyance of cash to Edward Albemarle.
Note : 0 = journal entry has been entered
%3D
View general journal
Record entry
Clear entry
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